So a gallon of gas is averaging $3.14 and...

[H8RADE]

Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company.

Exxon (XOM, Fortune 500) shares gained nearly 2% in pre-market trading on the results, which were underpinned by soaring crude prices.

Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. That's up from $10.25 billion, or $1.76 per share, in the year-ago period.

That tops Exxon's previous quarterly profit record of $10.7 billion, set in the fourth quarter of 2005, which also was a record for any U.S. corporation.

Exxon also set an annual profit record by earning $40.61 billion last year, or nearly $1,300 per second.

The company's full-year results exceeded its previous record of $39.5 billion in 2006.

In the fourth quarter, revenue rose 29.5% from a year ago to $116.64 billion.

Analysts were looking for the company to report quarterly profit of $10.36 billion on revenue of $114.9 billion, according to earnings tracker Thomson Financial.

Exxon's earnings are sure to draw fire from consumer rights groups, who contend the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists. They have previously called for a windfall profit tax on oil firms, and have proposed breaking up the big oil companies created during the 1990s merger wave.

Exxon attributed its impressive results to strong performance across its divisions, but a large part of the surge in profit can be attributed to soaring oil prices.

Last year, crude prices skyrocketed nearly 60%. That surge helped prices break through the $100 a barrel mark for the first time ever early last month.

Natural gas prices have also increased compared to last year, albeit marginally.

But costs have also increased for the oil companies, and they haven't been able to make as much selling gasoline, which is why profits haven't risen as rapidly as crude prices.

Exxon isn't the only oil giant to report impressive earnings. No. 2 Chevron (CVX, Fortune 500) also reported a jump in quarterly profit on Friday. Conoco (COP, Fortune 500), the nation's third largest oil company, trounced profit estimates by nearly 25% when it reported last week.

[Karps TA]

But costs have also increased for the oil companies, and they haven't been able to make as much selling gasoline, which is why profits haven't risen as rapidly as crude prices.


That sentence makes me mad. As if saying oil companies should be making more money then they already do.

[6forwardgears]

That sentence makes me mad. As if saying oil companies should be making more money then they already do.

Yeah, I hate reading stuff like this, it only makes me :mad: and it's pretty much out of anyones control, they basically own the planet.

[Prince Valiant]

:mad: Yeah. Evil oil companies. If it weren't for them! :mad:

[GRNDNL]

:mad: Yeah. Evil oil companies. If it weren't for them! :mad:


:rolleyes: No kidding, I really wish they would teach economics in school.....

[jbiscuit]

it sucks sure but complaining about gas prices is like complaining about the weather.

[H8RADE]

No complaining here.
I love snow.
Ice races this weekend.
:thumbsup

[Karps TA]

Give me a break. Oil companies create their own shortages and price increases. Yearly they shut down their refineries for "maintenance" right during key stretches, typically at the end of quarters to really give their profits a boost. Not too mention the 2-3 fires at refineries that happen every year. How many other manufacturing businesses do you know how have to shut down their business several times a year because of maintenance and fires? I work for Briggs if we screw up a line we can't turn around and just tell our customers engines now cost $100 more because we made a mistake. Oil companies screw up and pass the costs down to the consumers and we end up with no choice but to bend over and take it.

The price of oil a couple years ago didn't even get over $70 and we paid more for gas here then it did when oil hit $100 a barrel.

It's just such a racket it actually now makes me laugh.

Even funnier to me is the govt in regards to it. Exxon Mobile combine and Congress has 1 hearing on it. Sirius and Xm want to merge because both are losing money and Congress has had a dozen meetings on it and still haven't passed it.

[Z28Roxy]

:rolleyes: No kidding, I really wish they would teach economics in school.....

I wish they would teach upper division economics in school :D

There's far more to Econ than simple supply and demand curves. Something like oil can cripple an entire economy because so many goods and services depend on it. Trucking, farming, food, retail, and many more things are directly or indirectly affected by oil prices.

Lastly, my big problem isn't so much with oil itself its the false advertising crap that has been going on. Oh we have to raise prices because a major pipeline broke or because there aren't enough refineries, blah blah blah. All the while record profits over and over again. So stop this false advertising crap and just admit you've got us all bent over a barrel. I'll have some respect for them then. Right now the bullshit just makes me think: :flipoff2:

[jbiscuit]

every good and service you buy/pay for is directly affected by oil prices. Gas goes up, so does the cost of an apple, a T-shirt, heat for your home, bus fare, airfare etc etc. So the comment that oil runs the planet is not far off...its the crack of our nation. Without it, there is total chaos. The oil companies are the dealers here and they have us "addicted" to it. You have a right to NOT buy gas. So don't......see how your life is affected. Trying mountain biking 17 miles one way to work in -5 degree weather a few times.

[Z28Roxy]

You have a right to NOT buy gas. So don't......see how your life is affected. Trying mountain biking 17 miles one way to work in -5 degree weather a few times.

And then make all your own stuff (don't buy clothes, electronics, or groceries retail).

[GRNDNL]

I wish they would teach upper division economics in school :D

There's far more to Econ than simple supply and demand curves. Something like oil can cripple an entire economy because so many goods and services depend on it. Trucking, farming, food, retail, and many more things are directly or indirectly affected by oil prices.

Lastly, my big problem isn't so much with oil itself its the false advertising crap that has been going on. Oh we have to raise prices because a major pipeline broke or because there aren't enough refineries, blah blah blah. All the while record profits over and over again. So stop this false advertising crap and just admit you've got us all bent over a barrel. I'll have some respect for them then. Right now the bullshit just makes me think: :flipoff2:

Ah.....Ok......:rolleyes:

Your first paragraph is right on, minus the first sentence, the second one....well....Sorry it is just as easy as simple supply and demand. Untill we start drilling for our own oil, build more refineries, stop wasting money on custom blends of fuel and stop subsidizing poor alternative fuel choices nothing will change.

[Z28Roxy]

Sorry it is just as easy as simple supply and demand.

Uh, wrong again buddy. Read up on interest rates and speculation for one. If Econ 101 answered everything, do you really think they would offer PhDs in Economics? :rolf

You ever hear the joke about how many economists it takes to change a light bulb?

[Windsors 03 Cobra]

Buy some stock and join in on the record profits.

[Z28Roxy]

Buy some stock and join in on the record profits.

With my luck, we'd see sub $2.00 a gallon gas like last winter.

[Prince Valiant]

There's far more to Econ than simple supply and demand curves. Something like oil can cripple an entire economy because so many goods and services depend on it. Trucking, farming, food, retail, and many more things are directly or indirectly affected by oil prices.This is all well and good....but what does it have to do with exxon's profits? Nothing. If exxon was to suddenly say we'll operate at a net-zero profit, not a whole lot would change regarding either the price of gas nor the price of anything else. In a 13,000,000,000,000/yr dollar economy (US only) a39,000,000,000 profit doesn't really amount to a whole lot...especially since the vast majority of that profit goes toward things like our 401k's (Who owns the oil companies? We do). And that's a 39B worldwide...given that the total global economy is around 50trillion, again, zero profit oil companies won't do squat.

BUT, exxon's record profit has everything to do with the increasing cost of a barrel of oil...not just what happens at the sales pump. Because exxon sells oil in the world market, they enjoy HUGE profits because of increased demand from countries like India and China...both of which have seen 10-fold increases in the number of drivers and industry in the last decade only.

And while increased demand has driven the price of oil up tremendously, the price to get that barrel of oil out of the ground has stayed relatively fixed (around 7 bucks a barrel goes toward getting into the barrel, compared to 17-20 bucks here in the US).

As it stands, of exxon's profits, only 2.3 billion of it (out of 39B) is from what happens from refining and selling. Considering the amount of oil sold not just in the US, but throughout the world, that's not that impressive a profit. Hell, when you do over 400,000,000,000 dollars in business, only turning a 39,000,000,000 profit isn't all that impressive either.

Now of course, a somewhat blatant ommission in telling the story of exxon's record profit has everything to do with ommiting the effect of the falling dollar. The dollar has fallen so precipitously in the last 10 years that we are now on par with the canadian dollar...so all reported earnings or losses, especially for a global company, will look impressively inflated. Cost of a barrel of oil not only is being influenced by increasing demand/tightening supply, but by the dropping dollar.


Lastly, my big problem isn't so much with oil itself its the false advertising crap that has been going on. Oh we have to raise prices because a major pipeline broke or because there aren't enough refineries, blah blah blah. All the while record profits over and over again. So stop this false advertising crap and just admit you've got us all bent over a barrel. I'll have some respect for them then. Right now the bullshit just makes me think: :flipoff2:
Problem is, is you think that oil companies say "well, we are going to have to raise our prices because yadda yadda yadda...."

Oil companies don't set their prices. Prices are set by the open market. Oil companies sell to the highest bidder.

When something like a pipeline/refinery DOES shut down for whatever reason, it does lessen the supply. Buyers suddenly are competeing for less oil...considering that we are virtually always running at max capacity, that means that not everyone is going to get all the gas that they want. Some are willing to pay more to ensure their tanks in the ground are full. Some can't afford to keep their tanks full and buy as much as they can at the market prices....which is fine, because they couldn't afford to buy more, that leaves gas for others. Otherwise, if prices didn't increase to reflect diminised supply, nothing would keep buyers from buying as much as they normally do...and with diminished supply's, many vendors would just be left with empty gas tanks (this is why "price gouging" isn't always a bad thing).

And you think that it somehow benifits the oil companies to have a pipeline shut-down/scheduled maintenance for a refinery? Think again....because we are at near 100% refining capacity, a shut-down for a company means that THEY are the ones selling less. Sure, other guys sell just as much at a higher price....but the company left holding the bag may be selling 30% less. Listen, you never increase the amount of money you make by selling 30% less at a 10% higher price.


Sorry, but Kieth is right...the really smart economist (friedman/williams/et al) recognized it really IS about supply and demand...the dumb ones (Krugeman) try to make it tougher than it really is.

[Z28Roxy]

Sorry, but Kieth is right...the really smart economist (friedman/williams/et al) recognized it really IS about supply and demand...the dumb ones (Krugeman) try to make it tougher than it really is.

This is way too much of a politically charged statement. Do you have the credentials to criticize PhDs in economics?

[Prince Valiant]

This is way too much of a politically charged statement. Do you have the credentials to criticize PhDs in economics?Credentials? No.

Instead, I've got a brain.

...and an mba in healthcare economics :rolleyes:

But what does it matter? Do you think economist don't criticize each other theory? Read what Krugeman (a hack columnist for NYtimes) thinks of friedman...who's considered the father of modern economics.

What, PhD's are above criticism? Please.

Did you know the guy that came up with plate tetonic theory didn't even have a HS education?

[Z28Roxy]

Credentials? No.

Instead, I've got a brain.

...and an mba in healthcare economics :rolleyes:

But what does it matter? Do you think economist don't criticize each other theory? Read what Krugeman (a hack columnist for NYtimes) thinks of friedman...who's considered the father of modern economics.

What, PhD's are above criticism? Please.

Did you know the guy that came up with plate tetonic theory didn't even have a HS education?

I just meant leave the economists to criticize each other :rolf. And the fact that there is disagreement should show you something :devil

And uh, Alfred Wegener came up with Plate Tectonics Theory 8 years after earning a PhD (albeit in astronomy, though he was a very multi discipline scientist).

[pickardracing]

I wish I could run a business like an oil company.

If i fück something up? Raise prices and people still buy.

Shortage of my own product? Raise prices.

Blatantly and openly lie to my customer base? People still buy.

Ah, thats the life.

[Prince Valiant]

I just meant leave the economists to criticize each other :rolf. And the fact that there is disagreement should show you something :devil
Why? Seriously, that is as absurd as suggesting something as blatantly stupid as: "Well, only men should be allowed to debate". Why disqualify someone from criticizing for arbitrary and specious reasons?

I have every right to voice an opinion on an economist whose column I've read literally over 100 times. He puts it out there, it certainly my right to critique his views.

Oh, and what does the fact that those guys disagree tell me? That even when wrong, Krugman got still got a phD in economics.

And uh, Alfred Wegener came up with Plate Tectonics Theory 8 years after earning a PhD (albeit in astronomy, though he was a very multi discipline scientist).Yep...my bad. Now I'm confused and cannot recall to whom I was trying to refer to...

regardless though, the point is that one of the major contributers to the theory of how the earth was formed was proposed by a high school dropout. He of course was villified at first due to his lack of credentials...but his work is now considered very elementary.

It'll come to me at three o'clock tonight.

[07ROUSHSTG3]

hahaha, people that b!tch about gas prices and companies making too high of profits make me laugh. socialist red diaper doper babies as michael savage would say.

[Karps TA]

That's okay I laugh at people who blindly think that whatever big corporations and the govt do is always on the up and up. People who never ask questions get taken advantage of sooner or later.

Why is it that people can ***** about the price of healthcare and want something done about the evil doctors and hospitals or drug companies making too much money to keep people alive. But whenever someone bitches about the prices of gas, which is just about as important, it's people being foolish and stupid?

[Prince Valiant]

That's okay I laugh at people who blindly think that whatever big corporations and the govt do is always on the up and up. People who never ask questions get taken advantage of sooner or later. While niether are inherently honest, i just laugh at the people who blame "big oil" when our problems are more related to "big gov't" (whom, by the way raked in 2.5 trillion dollars in taxes last year and made more money on oil than did "big oil").

And then, people look to the same "big gov't" to solve our problems when it's their failed regulatory practices that keep our prices sky high. It's like going to a mechanic who keeps screwing up your car....why go back?

Corporations we can keep honest with our pocketbooks. Gov't essentially does what it wants.

Think about it...no matter how rich, powerful, or connected some "fat cat CEO" is...he can't EVER take my right to own a gun. To order food with trans fats. To smoke in my own house if I want...and more. Gov't can take EVERYTHING if it wants.

[05caddyext]

Corporations we can keep honest with our pocketbooks. Gov't essentially does what it wants.

Yet only 20% of Americans with the right to vote actually vote. I'll bet its more like 90% that ***** about the gov't. We make the government. We break the government. People don't think they can make a difference, so they just ***** to people they know instead of meeting the ones they don't. Strength in numbers. Until then, STFU.